Vestwell and Commonwealth Partnership Moves to PEPs

Vestwell is expanding its partnership with Commonwealth Financial Network to launch a new pooled employer plan (PEP).

The Gateway 401(k) Plan will be available exclusively through Commonwealth’s affiliated advisors and will feature administrative and compliance capabilities provided by FuturePlan.

Through the existing partnership, Vestwell provides recordkeeping and third-party administrator (TPA) services for individual business clients of Commonwealth advisors. The result is a powerful, innovative savings solution for Commonwealth advisor’s workplace clients.

“Commonwealth is a key partner of ours, and we’re excited to offer their advisors the Gateway 401(k) Plan solution,” said Aaron Schumm, founder and CEO of Vestwell. “We spent a lot of time collaborating on this PEP solution, so it is exciting to bring this to life with a great partner like Commonwealth to scale their advisor’s businesses while generating more opportunities for everyone to access retirement savings programs.”

“We’re seeing increased demand from our affiliated advisors and their clients for retirement plan solutions with streamlined processes that reduce administrative burdens to make workplace retirement saving solutions more accessible,” said Mat Powers, vice president of Strategic Retirement Solutions at Commonwealth. “Vestwell’s advanced technology ensures our advisors can evolve, scale, and expand their practices while delivering optimal solutions to clients.”

Vestwell will serve as the pooled plan provider (PPP), handling recordkeeping, payroll processing, and administration for the Gateway 401(k) Plan, and will be supported by FuturePlan’s compliance, testing, and plan design services. Commonwealth will provide its investment management services as the 3(38)-fiduciary of the Gateway 401k Plan.